Scott Tech signs deal to build automated system for JBS Canada

Scott Technology has signed a deal to provide a materials handling system for JBS Canada. Photo / Supplied

NZX-listed Scott Technology said it had signed a non-binding memorandum of understanding to deliver its first fully automated warehousing system for JBS Canada's Brooks beef processing plant in Alberta, with an estimated value of US$35 million ($56m).

The project will be the largest ever in Scott's history and will see the company integrate existing technology from across the group, together with systems from its joint venture partner, logistics systems company Savoye, to design and build a complete end-to-end material handling solution.

Scott Technology is majority-owned by Brazil's JBS - the world's biggest meat processing company.

Chief executive John Kippenberger said Scott had signed a joint venture agreement with Savoye in 2020 to use its automated carton storage and retrieval technology to expand its own material handling system offering.

"With this JBS transaction, we will deliver a truly end-to-end solution, integrating the Savoye tech seamlessly with Scott's own conveying, sorting and palletising applications," he said.

"As part of our Scott 2025 strategy, we committed to expanding our proven materials handling business outside of its European stronghold and into the North American market, with a particular focus on frozen foods and meat processing."

The JBS facility in Brooks city is one of the largest beef processing facilities in Canada, employing over 2800.

The new automated solution will replace a fully manual system.

Like New Zealand, North America continues to experience labour supply issues, particularly in the meat processing space.

The system will enable picking of 3000 cartons per hour, shipping of 40,300 cartons per day, and high-speed palletising of 120 plus pallets per hour.

It will integrate with warehouse execution software for complete monitoring, management, and control of goods.

The project will be supplied from Scott's facilities in Europe.

Scott's automated guided vehicle components would be supplied out of Scott USA.

Dunedin-based Scott's shares last traded at $2.78, having gained 10 per cent over the past 12 months.